Tredyffrin Easttown Real Estate
Frequently Asked Question: What happens to my deposit if I can't get a mortgage?
Even when you have a mortgage pre-approval things can happen to derail a real estate transaction. Many first time buyers worry they will lose their deposit if they cannot get a mortgage. Well, it all depends, and is another reason to select an experienced and strong buyers' agent to represent you so you are protected.
Watch our video that deals with this question:
Depending how your agreement of sale is written matters when a mortgage is refused.
The reason for your failing to get a mortgage might be loss of a job. It might be a low credit score. It might be the requirement to use an FHA loan when the home you are buying is not in an FHA approved development. There are many reasons why a mortgage is declined later in the process. Having a mortgage contingency will protect you and your deposit as long as you have answered all questions truthfully.
Many builders want the mortgage contingency removed as soon as possible, because they are taking a risk to build a home for you and have an investment in the building process. If the mortgage contingency is removed and you later find you cannot get a mortgage your deposits will be at risk.
Even if a mortgage contingency is removed it does not mean that you might not be applying for a mortgage, but removing the contingency does remove the protection it gives.
If you are thinking of buying a Tredyffrin Easttown home and need representation contact nick Vandekar, Tredyffrin Easttown Realtor with Long & Foster Real Estate Inc., Nick@VandekarTeam.com, office 610-225-7400, cell or text 610-203-4543. Website www.SellingTheMainLine.com.
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